US equity markets were mostly tracking lower before the opening bell Friday as investors parsed a stronger-than-expected jobs report for August.
The S&P 500 fell 0.2% and the Dow Jones Industrial Average declined 0.3% in premarket activity. Nasdaq Composite futures were up 0.1%.
The three indexes finished the previous trading session higher, with the Dow and the S&P 500 posting their biggest single-day percentage gains in more than four weeks.
Total nonfarm payrolls rose by 162,000 last month, the Bureau of Labor Statistics said Friday, nearly triple the 55,000 increase projected in a Bloomberg-compiled survey. July's tally was revised to a gain of 21,000 from a fall of 23,000.
The jobs report comes as the Federal Reserve weighs labor-market conditions and inflation expectations ahead of its policy meeting later this month. Fed Chair Kevin Warsh said late last month that the US economy was "doing well" on employment, describing inflation numbers as more concerning.
Markets are pricing in a 58% probability that the Federal Open Market Committee will raise its benchmark lending rate at its September meeting, according to the CME FedWatch tool.
Fed Governor Christopher Waller said Thursday he would support keeping interest rates steady if further signs of disinflation emerge, though he seemed willing to tighten monetary policy if price pressures intensify.
West Texas Intermediate crude oil slipped 0.5% to $90.83 a barrel, while Brent inched 0.3% lower to $95.21.
Treasury yields were higher, with the two-year rate rising 5.7 basis points to 4.393% and the 10-year rate increasing 2.6 basis points to 4.786%.
Lululemon (LULU) shares tanked about 20% early Friday as the athletic apparel retailer lowered its full-year outlook amid challenging market dynamics and continued pressure on the brand.
UiPath (PATH) fell 11% after the software company released its latest quarterly results late Thursday.
Spot gold was 1.9% lower at $4,388.89 per troy ounce.
